Emerging Markets Fixed Income Specialists

Jobless Claims in U.S. Hover Around Lowest Level in Four Decades

Fewer Americans than forecast filed applications for unemployment benefits last week, giving workers more reason to feel secure in their jobs. Jobless claims rose by 3,000 to 259,000 in the week ended Oct. 17, a report from the Labor Department showed on Thursday in Washington. The median forecast of 47 economists surveyed by Bloomberg called for 265,000. The four-week average, a less-volatile measure, was the lowest in four decades. Claims have stayed within a historically low range in the past few months as employers retain staff to meet demand driven by steady consumer spending. At the same time, the pace of hiring has eased amid slowing overseas markets and lingering weakness in manufacturing and energy-related industries. “The trend in claims remains extremely low,” Jennifer Lee, a senior economist in Toronto for BMO Capital Markets, said before the report. “Companies aren’t laying off a lot of workers. It’s still a pretty healthy job market out there.” Economists’ estimates in the Bloomberg survey for weekly jobless claims ranged from 250,000 to 275,000. The previous week’s figure was revised to 256,000 from an initially reported 255,000. The data cover the period that the Labor Department surveys businesses and households to calculate payrolls and the jobless rate for October. The four-week moving average decreased to 263,250, the lowest since December 1973. The comparable reading for the September survey week was 272,500.